Sponsored Permanent Visas (ENS/RSMS)

The Employer Nomination Scheme visa (subclass 186) is for skilled workers who want to work in Australia. This visa involves a two-step process, firstly, nomination by an approved Australian employer and then an application under the nominated stream. It is part of the Permanent Employer Sponsored Visa programme.

This visa is a permanent residence visa. You can be in or outside Australia when you apply. If you are in Australia, you must hold a substantive visa or a bridging visa A, B or C.

The two most popular streams are (note that the Agreement stream is also available and is for people sponsored by an employer through a labour agreement):-

The Temporary Residence Transition stream (TRT) is for subclass 457 visa holders who have worked for two years, while holding a subclass 457 visa, in the same occupation with their nominating employer, who wants to offer them a permanent position in that occupation.

The Direct Entry stream is for people who have been nominated by their employer under the Direct Entry stream or people who have never, or only briefly, worked in Australia, or temporary residents who do not qualify for the Temporary Residence Transition stream.

There are other requirements for this permanent visa and the above outlines just some of those to make a compliant application.

IMPACT OF 18 APRIL 2017 CHANGES FOR ENS / RSMS APPLICANTS

From 1/7/17

IELTS 6 in each band will be required for both Direct Entry and TRT streams.

The maximum age limit of 50 for TRT stream will remain.
(Note: For the Direct Entry pathway – age will be reduced to 45 years old)

Before 31/12/17

DIBP will begin collecting TFNs for 457 visa holders and data match with ATO to ensure no under-payment of nominated salary.

DIBP will commence publication of sponsors sanctioned for failing to meet sponsorship obligations.

For Applications Lodged from March 2018

For both ENS and RSMS, can only sponsor for an occupation on the MLTSSL (with certain additional occupations available for regional employers under RSMS).

The TSMIT & market salary rates must be met.

Need to have worked for 3 years under the Medium Term Stream of TSS visa before being eligible for ENS.

At least 3 years work experience will be required.

All applicants to be under 45 at time of application to be eligible for 186 or 187 visa.

A more vigorous training requirement for employers will be required, to become an approved sponsor.

Budget: Training requirement strengthened: employers who wish to nominate an employee for sponsored permanent residence will be subject to a:
$5,000 training levy if annual turnover >$10 million; or
$3,000 training levy if annual turnover < $10 million
(The training levy is in addition to nomination and visa application charges. Unclear at this stage if the training levy will replace “general” training requirements or if it is in addition to “general” training requirements).

Have a salary at least equivalent to the Fair Work Australia High Income threshold (currently AUD$138,900.00 from 1 July 2016)

Relevantly, the legislative framework is expected to incorporate certain “grandfathering provisions” which ensure that persons holding 457 visas have some rights to continue in their intended stream moving on, even if their occupation has been removed. This means that if the visa holder’s occupation has been removed from the new list of occupations, they may still be eligible for transition into a 186 or 187 Temporary Residence Transition (“TRT”) stream if they have held a 457 visa prior to 19 April 2017.

There is still ambiguity whether this “grandfathering provisions” pathway will remain available after March 2018, when the 457-visa scheme will be abolished, and replaced by the Temporary Skills Shortage (“TSS”) visa, which will include substantial changes for the whole framework.

Furthermore, there is ambiguity as to the treatment of ENS and RSMS sponsored visa applications in the TRT stream lodged prior to March 2018.